A Back
Taxes Property is For Sale in Your Area - How to Get It
By Maggie Dawson
Unfortunately, in the current economic climate, property being sold for
back taxes is at an all-time high. As more and more people find the task
of home ownership to be too cumbersome, and more and more people find
themselves unable to come up with the hundreds to thousands of dollars to
pay their government property taxes, back taxes property is cropping up
everywhere. Their loss can be your gain, if you play your cards right.
If you're looking to invest in back taxes property, there are a couple
ways to go about it. Don't make the mistake of thinking you can pick up a
nice property- like one you'd like to move right into- for the amount of
back taxes owed. This never happens. What actually happens at the tax sale
auction, which is held monthly or yearly by county, is that there are many
bidders all trying to get the same properties, and the nice ones will be
bid up to close to what you'd pay on the open market. The other pitfalls
are that you rarely, if ever, can inspect the interior of the property
you're bidding on (eek... what nightmares lie within?), and you will have
to pay the full amount, in cash, at the sale.
If you do end up winning the bidding war and purchasing a property,
what you are actually purchasing in most states is either a lien, which
will allow you to petition to foreclose at some point in the future, or
the deed, but you will have to wait a certain period of time before you
can have it. It is very rare that you will actually get the deed and
access to the property right then and there (only a few states do it that
way). Usually, the counties give the delinquent owners a year or more to
come in and "redeem" the property- that is, pay off the back taxes, plus
the accrued fees. In this case, you would get your money back along with
whatever the state ordained interest rate on that money is. This scenario
plays itself out almost every time, so if you're looking to acquire back
taxes property this way, you'll almost always be out of luck.
A much better way to obtain the actual properties themselves is to buy
them directly from the delinquent owners just before they are about to be
lost for good. These owners, in that time frame, are a unique subset of
sellers who are often willing to sell you their deeds for pennies on the
dollar. This is the only surefire method to acquire back taxes property
for cheap, and without a ton of competition. It's also a great way to find
a cheap home to live in yourself.
Read this free info on
investing in tax sale
property. This is a tax lien/tax deed investing method that very few
investors are exploiting!
Then learn to
profit from tax sales using this "loophole" we discovered after years
of unsuccessful tax sale investing.
M. Dawson is a Chicago area writer, real estate investor, and
entrepreneur.
Article Source:
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